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The evidence at trial clearly shows that petitioners have
admirably worked very hard, under difficult circumstances, to
support themselves and their family and to pay their taxes on
limited income due to Mr. Thomas’s disability. However, given
the clear language of the applicable statutes, the Court
concludes that Mr. Thomas’s disability pension benefits are
taxable. Accordingly, the Court sustains the deficiencies
determined by respondent for the 2002 and 2003 taxable years.
In their brief, petitioners argued that if they were
ultimately found liable for the deficiencies, then interest
should be abated because respondent previously agreed with them,
at the time of the 1999 audit, that Mr. Thomas’s disability
pension benefits were nontaxable. Pursuant to section
6404(e)(1), the Commissioner may abate part or all of an
assessment of interest on any deficiency or payment of income
tax. Abatement may be granted to the extent that any tax
deficiency or delay in payment is attributable to unreasonable
erroneous or dilatory performance of a ministerial or managerial
act by an officer or employee of the IRS acting in his or her
official capacity.
This Court lacks jurisdiction over petitioners’ abatement
request. Generally, a taxpayer must first file with the
Commissioner Form 843, Claim for Refund and Request for
Abatement. See sec. 301.6404-1(c), Proced. & Admin. Regs. If
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